Difficulty: Easy
Correct Answer: 10%
Explanation:
Introduction / Context:
We allocate a total purchase cost across two groups. The first group is sold at a known loss, so we can compute its realized revenue. To break even overall, the second group must contribute enough extra to offset that loss. This converts to a direct percentage gain requirement on the remaining portion.
Given Data / Assumptions:
Concept / Approach:
Compute cost and revenue for the first portion, then find the revenue required from the remaining portion to reach exactly ₹ 750 in total revenue. Convert that required revenue into a percentage gain over its cost.
Step-by-Step Solution:
Cost of first part = (2/5) * 750 = ₹ 300Revenue from first part = 0.85 * 300 = ₹ 255Remaining cost = 750 − 300 = ₹ 450Required revenue from remainder = 750 − 255 = ₹ 495Gain% on remainder = (495 − 450) / 450 * 100 = 10%
Verification / Alternative check:
Total revenue 255 + 495 = 750 equals total cost 750, confirming break-even.
Why Other Options Are Wrong:
9% and 8% are not enough to offset the early loss; 12% and 15% would create an overall profit.
Common Pitfalls:
Applying 15% to the whole rather than just the fraction sold at a loss.
Final Answer:
10%
Discussion & Comments